Should You Sell Without a Realtor?

Should You Sell Without a Realtor in Toronto?

While most people enlist the help of a professional to sell their property, there are some who choose to sell their home without a Realtor. 

It is the rare person who is able to sell without a real estate agent. Some have a family member or friend they’ve agreed to sell to and aren’t too concerned about price. If that isn’t the case however, you’ll need have to have skills and knowledge in a variety of areas to make sure you sell for the right price and avoid running into problems with the sale.

Here are some factors to consider if you are thinking about selling without a Realtor: 

1.  (Current) Market Knowledge

Realtors have access to information you don’t have. They know about recent sales in your neighbourhood, area, and property type. These comparable listings help them set the right price for your home. You need to know much specific pros/cons impact the value. A Realtor knows how much value your kitchen adds, how much value your unfinished basement subtracts, how much value new windows add, and so on. Buyer’s agents will try to lowball you if you didn’t price accordingly. 

2.  Knowing How to Sell / How to Market

It’s a Realtor’s job to know what buyers are looking for, so they can advise you on small changes to make, how to stage your home, how to take appealing listing photos for MLS, and how to market your home across other platforms. A Realtor will likely offer staging and will have a marketing plan in place so you won’t have to overpay for these services. They also know how to negotiate with buyer’s agents. If a buyer has an agent and you don’t, it’s likely you could be out-negotiated and lose money in the deal. Experience is a valuable thing to have on your side. 

3.  Real Estate Law 

This is the part where selling gets most complicated. Selling a home is a huge financial transaction, so there are understandably many laws in place to protect buyers. If you fail to follow the law when selling your home, you could have deals fall through, or in a worse case scenario be sued. Then, there are the many legal documents involved in the sale along with lawyer fees.

4.  Pre-Qualifying Buyers

You might get an offer from a buyer, only to find out they can’t actually afford it. Realtors make sure you don’t waste your time with a buyer who doesn’t check out. A buyer’s credit checks, income verification, approved bank loans - and more - are ways to confirm a buyer is pre-qualified to make this major purchase.  

5.  Time and Energy

Open houses and showings are a lot of work (Not to mention the time that goes into preparing the house before buyers walk through the door). You will need to be reachable by phone and email so you don’t lose out on a buyer. You will need to work around their availability to host showings. Finally, you will have to spend time receiving offers and negotiating the sale.

NOTE: It's been found that most buyers AND sellers feel more secure when a real estate agent is involved in showings. Buyers are more likely to view the listing as legitimate, while sellers feel safer having a professional oversee the open houses and showings.

6.   Will You Really Save Money? 

People who sell on their own often think they will save money. However, there are many ways you can lose money by not hiring a professional, such as by underpricing your home. You may sell it, but you could also lose out on a lot of money you could have had. A Realtor sets the right price based on market knowledge. They advise you when to sell based on when is a good/bad time in the market. They also help the sale go smoothly from a legal standpoint so you don’t wind up paying pricey legal fees. Finally, if your property’s ultimate buyer is working with an agent you will still have to pay a commission to the buyer’s agent AND pay a lawyer to finalize the sale.

***Final Thoughts: If you are considering selling your home without a Realtor, really think about the time and cost involved. Also, consider your specific skills and knowledge before attempting to sell on your own.

If you are learning towards hiring a Realtor but have questions, contact us! We are happy to answer any questions regardless of how you decide to list your home.